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21843 1 ORDINANCE NO. 21,843 2 3 AN ORDINANCE TO DECLARE IT IMPRACTICAL AND UNFEASIBLE 4 TO BID; TO AUTHORIZE OSBORN, CARREIRO & ASSOCIATES, INC., 5 TO PERFORM AN ACTUARIAL EVALUATION AND STRESS TESTING, 6 AT A COST NOT TO EXCEED SIX THOUSAND, SEVEN HUNDRED 7 FIFTY DOLLARS ($6,750.00), FOR THE PURPOSE OF EVALUATING 8 THE FEASIBILITY OF VARIOUS BENEFIT INCREASE AMOUNTS FOR 9 MEMBERS OF THE LITTLE ROCK POLICE PENSION AND RELIEF 10 FUND, NOW ADMINISTERED BY THE ARKANSAS LOCAL POLICE 11 AND FIRE RETIREMENT SYSTEM; TO DECLARE AN EMERGENCY; 12 AND FOR OTHER PURPOSES. 13 14 WHEREAS,in Little Rock,Ark., Ordinance No.20,805 (October 15,2013)("LRO No.20,805"),the 15 Board of Directors of the City of Little Rock, upon request by the Board of Trustees of the Little Rock 16 Police Pension and Relief Fund,transferred the administration of the Little Rock Police Pension and Relief 17 Fund,which applies to eligible Police Officers who were hired by the Little Rock Police Department prior 18 to January 1, 1983,to the Arkansas Local Police and Fire Retirement System("LOPFI"); and, 19 WHEREAS,Section 4 of LRO No.20,805,made an initial monthly increase in benefits and permitted 20 a review every three(3)years regarding a possible additional increase or Cost of Living Adjustment; and, 21 WHEREAS, while State Statute requires that benefit increases follow State Law, this is no longer 22 completely possible due to the fact that the Board of Trustees of the Little Rock Police Pension and Relief 23 Fund was disbanded, so based upon the representations of LOPFI and Section 5 of LRO No. 20,805, 24 substitutes an ordinance from the Board of Directors of the City of Little Rock to authorize such an increase; 25 and, 26 WHEREAS, an Actuarial Evaluation must be performed to assure that the proposed benefit increase 27 amount can be amortized over the remaining nineteen(19)-year period as set forth in Section 5 of LRO No. 28 20,705, before the proposed benefit increase will be brought to the Board of Directors for consideration; 29 and, 30 WHEREAS, the Actuarial Evaluation and Stress Testing required to formulate a recommendation, 31 builds on prior analysis performed by the firm of Osborn,Carreiro&Associates,Inc.,as the Arkansas State 32 Police and Fire Pension Review Board ("PRB")Actuary, prior to the transfer of the administration of the 33 Little Rock Police Pension and Relief Fund to the Arkansas Local Police and Fire Retirement System 34 ("LOPFI");and, [Page 1 of 3] 1 WHEREAS,the firm of Osborn, Carreiro&Associates,Inc.,performed the Actuarial Evaluation and 2 Stress Testing for the first three (3)-year review conducted in 2017, which resulted in an additional One 3 Hundred Fifty Dollars ($150.00)per month benefit increase to all retiree and survivor accounts beginning 4 January 1,2018,authorized by LRO No. 21,473 (September 7,2017); and, 5 WHEREAS, the Actuarial Evaluation and Stress Testing requires specialized knowledge of the 6 dedicated pension funding streams,member population,and current benefits,and gaining an understanding 7 of this knowledge would result in additional time and cost. 8 NOW,THEREFORE,BE IT ORDAINED BY THE BOARD OF DIRECTORS OF THE CITY OF 9 LITTLE ROCK,ARKANSAS: 10 Section 1. The Board of Directors declares it to be impractical and unfeasible to competitively select 11 actuarial services for the purpose of evaluating and stress testing the feasibility of various benefit increase 12 amounts for members of the Little Rock Police Pension and Relief fund,now administered by LOPFI. 13 Section 2. The Mayor or City Manager is authorized to enter into a Sole-Source Contract with Osborn, 14 Carreiro & Associates, Inc., for an amount not to exceed Six Thousand, Seven Hundred Fifty Dollars 15 ($6,750.00). 16 Section 3. Severability. In the event any title, subtitle, section, subsection, subdivision, paragraph, 17 subparagraph,item,sentence,clause,phrase,or work of this ordinance is declared or adjudged to be invalid 18 or unconstitutional,such declaration or adjudication shall not affect the remaining portions of the ordinance 19 which shall remain in full force and effect as if the portion so declared or adjudged invalid or unconstitu- 20 tional was not originally a part of this ordinance. 21 Section 4. Repealer. All ordinances, resolutions, or parts of the same that are inconsistent with the 22 provisions of this ordinance are hereby repealed to the extent of such inconsistency including, but not 23 limited to, Little Rock,Ark., Ordinance No. 20,805 (October 15, 2013), and Little Rock,Ark, Ordinance 24 No. 21,473 (September 7, 2017). 25 Section 5. Emergency Clause. The ability to adequately provide retirement benefits for retired Little 26 Rock Police Officers and eligible survivors who, among other things, are not a part of the Federal Social 27 Security System for their work as police officers is essential to the public health safety and welfare and this 28 fact is exacerbated when certain deadlines set by LOPFI require this action regarding an increase by the 29 month of September before a benefit increase can occur the following January;further, the necessity to 30 complete the evaluation and stress testing prior to a recommendation for consideration by the Little Rock 31 City Board of Directors, and the need to clam the period of amortization as nineteen (19)years, instead 32 of twenty-two (22)years,for the irrevocable agreement between the City and LOPF is also essential; an 33 emergency is declared to exist and this ordinance shall be in full force and effectfrom and after the date of 34 its passage. 35 PASSED: February 18,2020 [Page 2 of 3] 1 ATTE.. ' APPROVED: 2 , 1 1. _ 2P•11'1 4 Susan i' . ley, ' Clerk Frank Scott,Jr., yj 5 APPR ASITP S EGAL FORM: 6 8 Thomas M.Carpenter,City Attorne' 9 // 10 // 11 // 12 // 13 // 14 // 15 // 16 // 17 // 18 // 19 // 20 // 21 // 22 // 23 // 24 // 25 // 26 // 27 // 28 // 29 // 30 // 31 // 32 // 33 // 34 // 35 // 36 // [Page 3 of 3]